01-28-2012, 11:57 AM | #1 |
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Lease approval requirements (Canada)
Just wanted to know if there's minimum income requirements to lease a BMW 3 series.
My current E90 was purchased used so I never really financed or leased a car before. I'm planning to trade it in, it's a 2006 E90 325i with around 133,000km on it. Should I try to sell it privately before switching to a lease? I'm not sure how much trade in value the dealership will give for that. I make about 43k a year and I have a up to date FICO score from Equifax of 813. Also, do I have to pre-order one from my local dealership and leave some sort of deposit? |
01-28-2012, 03:37 PM | #2 |
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Your FICO is very good and it is unlikely that you will be denied, despite I don't think that it is 'sane' to buy a car as expensive as your income. My own rule of thumb was the car value no more than 50% of annual income.
The general rule is that all your credit payments won't exceed 40% of your gross income, which is suicidal, IMO. This could be even in excess of 1000$/month in your case. Last edited by Saintor; 01-28-2012 at 03:54 PM.. |
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01-28-2012, 09:52 PM | #3 | |
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I've also looked into the 320i it seems like a huge downgrade from my current E90 325i. The $35,000 price tag isn't bad though with all those included features. |
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01-28-2012, 09:57 PM | #4 | |
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01-29-2012, 12:56 AM | #5 |
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You're right. Having that cash on hand to invest with is a much better idea than throwing it all on a lease to save $150 a month. That's what I'll probably do.
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01-29-2012, 02:56 AM | #6 |
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What do they look at to get a lease approval? I recently started my own company and planning on using it as a tax-write off as well. It's not some multi-million dollar company lol so I don't exactly have steady income but making the payments should be no problem, have more than enough to buy the car out right but would rather lease(Tax-write off FTW!)
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01-29-2012, 07:46 AM | #7 | |
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I don't see how 500$/mo or 6K$ is 20% of your gross income since you said it was 43K$? Another possibility with your available sum amount is to apply a good chunk of it (5-6K$) as 'multiple security deposits', so it will bring down the interest rate considerably. |
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01-29-2012, 08:28 AM | #8 | |
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So the security deposits are something you can put down whenever during course of the lease? |
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01-29-2012, 08:37 AM | #9 | ||
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01-29-2012, 01:45 PM | #10 | |
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Don't they go by how many kms you use for business purposes? Not sure if you can actually write off the whole lease monthly payment. |
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01-29-2012, 04:56 PM | #11 |
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Yeah, you can't write it all off. Well you can but than you'd have to use the car for strictly business. Writing off 20-40% for business use is better than nothing
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